Q2 EPS Forecast for Southwest Airlines Lowered by Analyst

Southwest Airlines Co. (NYSE:LUV) – Stock analysts at Seaport Res Ptn dropped their Q2 2025 earnings per share estimates for shares of Southwest Airlines in a research report issued to clients and investors on Thursday, March 6th. Seaport Res Ptn analyst D. Mckenzie now forecasts that the airline will post earnings per share of $0.75 for the quarter, down from their previous estimate of $0.90. The consensus estimate for Southwest Airlines’ current full-year earnings is $1.55 per share. Seaport Res Ptn also issued estimates for Southwest Airlines’ FY2027 earnings at $4.00 EPS.

A number of other research firms have also issued reports on LUV. Barclays boosted their target price on Southwest Airlines from $32.00 to $35.00 and gave the company an “equal weight” rating in a report on Friday, December 6th. JPMorgan Chase & Co. reaffirmed an “underweight” rating and issued a $25.00 price objective on shares of Southwest Airlines in a research note on Monday, March 3rd. TD Cowen lifted their target price on shares of Southwest Airlines from $25.00 to $28.00 and gave the stock a “hold” rating in a research report on Friday, December 6th. Raymond James raised their price objective on shares of Southwest Airlines from $36.00 to $40.00 and gave the stock an “outperform” rating in a research note on Monday, December 30th. Finally, UBS Group boosted their price target on Southwest Airlines from $27.00 to $29.00 and gave the stock a “sell” rating in a report on Tuesday, January 7th. Seven equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $31.72.

Southwest Airlines Price Performance

LUV stock opened at $29.20 on Monday. The company has a current ratio of 0.92, a quick ratio of 0.85 and a debt-to-equity ratio of 0.49. The company has a market capitalization of $17.30 billion, a P/E ratio of 40.55, a PEG ratio of 0.97 and a beta of 1.10. The business has a 50 day simple moving average of $31.44 and a 200-day simple moving average of $31.17. Southwest Airlines has a twelve month low of $23.58 and a twelve month high of $36.12.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Thursday, January 30th. The airline reported $0.56 EPS for the quarter, beating the consensus estimate of $0.45 by $0.11. Southwest Airlines had a return on equity of 5.77% and a net margin of 1.69%.

Southwest Airlines Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 2nd. Investors of record on Wednesday, March 12th will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 2.47%. The ex-dividend date of this dividend is Wednesday, March 12th. Southwest Airlines’s dividend payout ratio (DPR) is presently 100.00%.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the business. Kestra Investment Management LLC acquired a new position in shares of Southwest Airlines during the fourth quarter worth about $26,000. Raleigh Capital Management Inc. increased its stake in shares of Southwest Airlines by 186.7% in the fourth quarter. Raleigh Capital Management Inc. now owns 883 shares of the airline’s stock worth $30,000 after buying an additional 575 shares during the last quarter. Sanctuary Wealth Management L.L.C. boosted its stake in Southwest Airlines by 196.3% during the 4th quarter. Sanctuary Wealth Management L.L.C. now owns 889 shares of the airline’s stock valued at $30,000 after acquiring an additional 589 shares during the last quarter. Ashton Thomas Securities LLC acquired a new position in Southwest Airlines during the 3rd quarter worth $33,000. Finally, TD Private Client Wealth LLC increased its position in shares of Southwest Airlines by 41.1% in the 3rd quarter. TD Private Client Wealth LLC now owns 1,184 shares of the airline’s stock worth $35,000 after purchasing an additional 345 shares during the last quarter. Hedge funds and other institutional investors own 80.82% of the company’s stock.

Southwest Airlines Company Profile

Southwest Airlines Co operates as a passenger airline company that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2023, the company operated a total fleet of 817 Boeing 737 aircraft; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.